On December 31, 2020, Queen Company sold an equipment with carrying amount of P2,000,000 and received a noninterest-bearing note requiring payment of P500,000 annually for ten years. The first payment is due December 31, 2021. The prevailing interest rate of interest for this type of note at date of issuance is 12%. Present value of 1 at 12% for 10 periods - 0.322 and Present value of ordinary annuity of 1 at 12% for 10 periods - 5.650. On December 31, 2020, >what is the carrying amount if note receivable? >What is the gain on sale of equipment to be recognized in 2020? >What is the carrying amount of the note receivable on December 31, 2021? >What amount of interest income should be recognized for 2021?
On December 31, 2020, Queen Company sold an equipment with carrying amount of P2,000,000 and received a noninterest-bearing note requiring payment of P500,000 annually for ten years. The first payment is due December 31, 2021. The prevailing interest rate of interest for this type of note at date of issuance is 12%. Present value of 1 at 12% for 10 periods - 0.322 and Present value of ordinary annuity of 1 at 12% for 10 periods - 5.650. On December 31, 2020,
>what is the carrying amount if note receivable?
>What is the gain on sale of equipment to be recognized in 2020?
>What is the carrying amount of the note receivable on December 31, 2021?
>What amount of interest income should be recognized for 2021?
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